Can Domestic Manufacturing Offset Tariff Pressures? A Closer Look at Reshoring Apparel Production

As global trade dynamics shift and import tariffs increase, many brands and retailers are re-evaluating their sourcing strategies. The Office of the U.S. Trade Representative (USTR) has reaffirmed its stance on tackling labor and trade abuses in global apparel sourcing. The USTR cited concerns about forced labor in overseas supply chains and underscored its commitment to stronger enforcement of trade laws, including the Uyghur Forced Labor Prevention Act (UFLPA).

The statement also referenced historical U.S. apparel manufacturing levels from the early 1990s, suggesting that revitalizing domestic production through strategic tariffs is a viable path forward. While this position reflects a broader trend toward onshoring and supply chain resilience, the practical realities are more complex.

Against this backdrop, one mitigation strategy being explored by brands and retailers is the selective reshoring of products to the United States. The goal is to reduce tariff exposure while aligning with compliance expectations and ethical sourcing initiatives. However, this approach brings its own risks and operational hurdles.

The Strategy: Identifying Products Suitable for Domestic Production

Faced with rising tariffs and trade restrictions, brands and retailers are exploring whether a subset of their product lines can be manufactured domestically. These may include core, repetitive styles that are less reliant on complex sourcing or seasonal trends. Products such as basic T-shirts, undergarments, and socks are often cited as candidates for reshoring, given their consistent demand and relatively simple production requirements.

The idea is that by sourcing these products within the U.S., companies can avoid import duties and reduce exposure to global supply chain disruptions. Additionally, proximity to market can shorten lead times and improve responsiveness to shifts in consumer demand.

The Limitation: Production Capacity and Supplier Readiness

Despite these potential benefits, reshoring presents considerable challenges. Currently, the U.S. apparel manufacturing sector does not have the capacity to support large-scale production for most global brands. Domestic production facilities are limited in number and often operate at a smaller scale than their counterparts overseas.

Brands that pursue this strategy will likely need to onboard new suppliers that are relatively inexperienced or just entering the market. These suppliers may lack established systems for quality control, compliance, and high-volume throughput. In short, the capacity exists in theory, but not in a way that matches the scale and cost efficiency many companies require.

Without established partnerships and a mature domestic manufacturing ecosystem, this strategy introduces new layers of risk. These include quality variability, compliance gaps, and delays associated with scaling up new production facilities.

 The Risk: Increased Oversight and Operational Uncertainty

When companies add new, untested suppliers into their network, they face a number of immediate concerns. These include:

• Can the new supplier meet production timelines without compromising on product quality?
• Are safety and regulatory compliance standards understood and implemented?
• How quickly can the supplier scale if demand increases?

Answering these questions requires more than guesswork. It demands a structured, transparent, and data-driven approach to supplier onboarding and performance monitoring.

Risk Mitigation: Leveraging Digital Supply Chain Solutions

To navigate the complexity of building new supplier relationships and transitioning to domestic manufacturing, many companies are turning to digital platforms that provide greater visibility and control across the sourcing and production process.

Inspectorio offers a suite of solutions that support brands through the challenges of reshoring. These include:

Responsible Sourcing and Compliance

Inspectorio enables companies to assess the ethical and regulatory readiness of potential suppliers. Brands can conduct due diligence on labor practices, safety standards, and overall compliance, which is especially critical when working with new or smaller manufacturers. This transparency supports more informed supplier selection and minimizes the risk of non-compliance with local or international laws.

Quality Risk Management

New suppliers typically face a learning curve, particularly in aligning with a brand’s quality standards. Inspectorio’s Quality Risk Management solution helps brands detect quality issues early through real-time inspections and predictive analytics. This minimizes the risk of costly rework or shipment delays and allows companies to intervene before problems escalate.

Laboratory Test Management

Producing goods domestically does not eliminate the need for compliance testing. Inspectorio centralizes and automates lab testing processes to ensure that materials and products meet regulatory and safety standards. This is especially useful when introducing new product lines or working with unfamiliar suppliers who are not yet integrated into existing compliance workflows.

Production Management

Production planning and monitoring are essential when working with suppliers that are building capacity or scaling operations. Inspectorio’s Production Management solution provides visibility into timelines, order fulfillment, and production health. This helps brands maintain consistent supply without sacrificing quality or delivery performance.

Shifting production to the U.S. may appear to be a viable strategy in response to increasing tariffs and trade disruptions. However, the limitations in domestic manufacturing capacity and the reliance on new suppliers introduce significant challenges. The strategy is not impossible to execute, but it is complex and requires careful planning and oversight.

Digital platforms such as Inspectorio can help brands manage these risks by offering tools that enhance supplier visibility, support compliance, and monitor quality. As supply chains continue to evolve in response to economic and regulatory pressures, companies that invest in transparency and operational control will be better positioned to succeed, regardless of where they manufacture.

If reshoring is part of your strategy to manage tariff impact, contact Inspectorio to learn how our platform can support responsible sourcing, quality assurance, and production visibility throughout your supply chain.